Edwards sticks to $600M: 'That's the shortfall'

BATON ROUGE — Gov. John Bel Edwards said his goal remains raising $600 million in new taxes during a special session beginning Monday to make next year's budget whole, not the $450 million floated during a Senate Finance Committee earlier this week that would make TOPS flush.

The governor also said if the Legislature can't make permanent tax reforms by the end of the 2017 session he could support a constitutional convention.

Long-term reform will be required for future budgets as temporary taxes roll off the books in as few as two years.

"If we can't do that after creating a task force to give us a (road map to reform), then I think we could look to a constitutional convention," Edwards said during a meeting with Gannett Louisiana's Editorial Board.

Earlier this week Senate Finance Committee Chairman Eric LaFleur said he thought $450 million would be sufficient to meet the majority of the state's needs after discussing the issue with the governor.

But Edwards told the Gannett Louisiana Editorial Board that was a minimum number floated during budget negotiations with members who wanted to save TOPS, not a ceiling that would fill all the gaps.

The current budget for the 2016-17 year beginning July 1 funds TOPS at 48 percent, or less than $150 million. That means students who qualify would get less than half of their award after a bill to be signed by Edwards allocates the available money on a pro rata basis.

"During negotiations with (Senate Finance) the question became how much revenue I would be willing to put toward TOPS," Edwards said of the state's popular college scholarship program.

"They proposed putting every dollar raised toward TOPS until it was fully funded. I said no. Then it was 80 percent of every dollar raised and I said no. I said if we raise enough money we can put one-third toward TOPS, but it's not less than $450 million.

"So many people may be looking at $450 million, but the shortfall is $600 million."

Edwards said he believes lawmakers will raise taxes to avoid significant cuts to TOPS, safety net hospitals, parks, higher education and other programs and agencies.

"After putting together this budget, they have a clear understanding of the magnitude of a $600 million shortfall," he said. "It's an honest budget, but it's not one I want to implement."

Greg Hilburn covers state politics for the USA TODAY Network of Louisiana. Follow him on Twitter @GregHilburn1